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Question: the expected return on jk stock is 1578 percent while...

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The expected return on JK stock is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.51.

a. What is the risk-free rate of return?

= 2.63%

b. What is market risk premium?

= 8.71%

Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.

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